Location and Young Workforce Attract More US Companies to Mexico Jude Webber - FT.com | |
go to original March 3, 2015 |
Big catch: Axiom relocated its rod manufacture from China to Mexico
Axiom, a New York-based fishing rod manufacturer, used to have its products made under contract in China. Low costs were attractive; less so was having to wait for a container to be filled with 15,000 fishing rods, then a month or more for them to be shipped to the US, and then a further three or four weeks in a truck en route to its facility.
The company, which had begun to consider moving out of China because of concerns over quality and its contractor’s transparency, looked around, considering Vietnam and Thailand as potential Asian manufacturing locations. Eventually, the company decided to stop contracting out and to set up shop in Mexico.
Logistics won out. It was “just too cumbersome” for Axiom to keep its manufacturing base so far away, says Bob Penicka, president of Axiom Industries. Slightly higher Mexican costs were offset by faster transport.
After suffering an exodus of manufacturing companies to China from 2000-2010, Mexico’s star has been rising again as a destination for US companies “reshoring” into the Americas, as Chinese labour costs have increased.
...Mexico has a host of reshoring advantages besides location: a young and increasingly skilled workforce; the right timezone for US companies; and successful industrial clusters that have enabled the car and aerospace industries, for example, to thrive.
Read the rest at FT.com
We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!
From activities like hiking, swimming, bike riding and yoga, to restaurants offering healthy menus, Vallarta-Nayarit is the ideal place to continue - or start - your healthy lifestyle routine.